Gambling Advertising Survey 2010
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Compliance Report Gambling Advertising Survey 2010 Contents 1. Summary 2. Introduction 2.1 Background 2.2 CAP and BCAP Code Rules 2.3 Survey Objectives 3. Methodology 3.1 Method 4. Findings 4.1 Compliance rate 4.2 Compliance by media 4.3 Compliance by product 4.4 Complaints 5. Conclusions 6. Advice and Training 7. Appendices Appendix 1 - CAP Code - Gambling Section Appendix 2 - BCAP Radio Code - Gambling Section Appendix 3 - BCAP TV Code - Gambling Section Appendix 4 - Media Examined in the Survey Appendix 5 - ASA Adjudication Compliance Report Gambling Survey 2010 2 1. Summary The Advertising Standards Authority (ASA) is the UK’s independent regulator of advertising across all media. It administers the UK Advertising Codes and actively monitors compliance with them. The ASA has undertaken this survey to determine the compliance rate of ads in the gambling sector with the British Code of Advertising, Sales Promotion and Direct Marketing (the CAP Code), the BCAP TV Advertising Standards Code and the BCAP Radio Advertising Standards Code (the BCAP Codes). (Please note, this survey assessed ads appearing in media during the first week of July 2010. Ads were therefore assessed against the previous edition of the Advertising Codes; the present editions came into effect on 1 September 2010. Other than in presentation and scope the gambling rules for broadcast and non-broadcast advertising remain unchanged, although rules that applied to society and local authority lotteries now also apply to the National Lottery.) The Compliance team assessed gambling ads that appeared in a broad mix of media between 1 and 8 July 2010 (when the football World Cup was ongoing). To put the volume of ads in context, we needed to review ads over a two month period in the last Gambling Survey, carried out in 2007. Of the 796 ads assessed, we considered 31 were likely to breach a Code, a compliance rate of 96.1%. The result is 2.9% down on the findings of the 2007 Gambling Survey, which recorded a compliance rate of 99%. It is worth noting, however, that 25 of the 31 ads were near identical and were placed by only two companies. Those ads offered “free bets” but did not include significant terms and conditions. The Compliance team is engaged with advertisers to ensure that companies offering “free bets” are aware that they need to include significant terms and conditions in the ad itself (and only one-click away from internet display advertisements). 775 of the 796 ads appeared in non-broadcast media (newspapers and magazines, the Internet, circulars, direct mailings and posters) and 23 appeared in broadcast media (TV and radio). We have not included in the results duplicates of ads that we found more than once in the survey. Of the 775 non-broadcast ads assessed, we considered 4% (31) were likely to breach the CAP Code, a compliance rate of 96%. Encouragingly, none of the 17 television ads were likely to breach the BCAP TV Code and none of the six radio ads were likely to breach the BCAP Radio Code. That is in contrast to the 2007 Gambling Survey that found six TV ads to be in breach of the TV Code (four of those six were part of the same campaign). The survey targeted what the Compliance team considered to be obvious breaches of the Codes. The advertisers whose ads were likely to breach a Code were contacted and the Compliance team sought assurances that the ads will not be run again. The sector is under close scrutiny from many quarters, and ongoing monitoring of gambling ads across all media will continue to ensure high levels of compliance with the Codes are maintained. Compliance Report Gambling Survey 2010 3 Online “Free Bet” ads For internet display advertising, it should be noted that our contracted Media Monitoring company is unable to capture information that is revealed after a user has clicked on an ad e.g. , information on a landing page. That information may determine whether a breach of the CAP Code has occurred. Of the 276 internet display ads in the survey sample, 181 included a “free bet” offer. Such offers almost always involve significant conditions, which the CAP Code requires to be made known to the consumer before he or she makes a decision to take advantage of the offer. Because we did not have the means of capturing information accessible from a banner ad, for example, we were unable to fully assess whether those 181 ads were compliant with the Code. On 4 August 2010 the ASA published an adjudication (see Appendix 5) clarifying its position on internet display ads promoting “free bets”. Those ads need to include an indication that terms and conditions apply and that those terms and conditions should be one-click away only. After the publication of the adjudication, the Compliance team contacted advertisers in that sector and asked them to ensure their ”free bets” ads were in line with the adjudication. Given our inability to capture information that is revealed after a user has clicked on an ad and the timing, after our survey period, of the ASA’s key adjudication in relation to “free bets” internet display ads, we did not record any likely breaches of the CAP Code in relation to ”free bet” ads. It is perhaps helpful, therefore, to calculate an overall compliance rate with the 181 ads removed from the calculation. We would then be left with 31 breaches from a sample of 615, a compliance rate of 95%. (See Table 3). Compliance Report Gambling Survey 2010 4 2. Introduction 2.1 Background The ASA is the independent body that administers the CAP and the BCAP Codes (‘the Codes’), which set standards for the content, scheduling and placement of non-broadcast and broadcast ads. The ASA accepts complaints from public and the industry about advertisements and, where appropriate, it investigates complaints, proactively identifies and resolves breaches of the Codes. It also uses research to ensure its decisions take account of generally accepted standards and promotes and enforces high standards in ads generally. The Committee of Advertising Practice (CAP) is the body that created and revises the CAP Code. Its members include trade and professional bodies representing advertisers, agencies, media owners and the sales promotion and direct marketing industries. CAP provides a pre- publication copy advice service and co-ordinates the activities of its members to achieve the highest degree of compliance with the CAP Code. CAP’s Broadcast Committee (BCAP) is contracted by the communications industry regulator, Ofcom, to write and promote compliance with the rules that govern TV and radio ads. BCAP comprises major broadcasters licensed by Ofcom and trade bodies representing advertisers, agencies and satellite and cable broadcasters. The Compliance team works to ensure that ads comply with the Codes and with ASA adjudications. The team follows up ASA adjudications, monitors both broadcast and non- broadcast ads and takes immediate action to ensure ads that breach the Codes are removed or amended. One of the team’s objectives is to help create a level-playing field for marketers in each sector and it achieves that by communicating decisions with sector-wide ramifications. The Compliance team conducts surveys to assess compliance rates for ads in particular industries, sectors or media. The surveys help to identify marketing trends and to anticipate subjects of concern that might need to be addressed by the ASA, in its interpretation of the Codes, or CAP or BCAP, in their setting of standards in the CAP Code or the BCAP Code. The CAP Code applies only to ads in UK media; the BCAP Codes apply to all TV and radio Ofcom licensees. Complaints about non-broadcast ads in some foreign media can be referred through the European Advertising Standards Alliance (EASA) to the relevant country’s self- regulatory organisation. The introduction of the Gambling Act 2005 on 1 September 2007 resulted in changes to the legal framework as well as the CAP and BCAP Codes. Since that date, all gambling operators must abide by the Gambling Commission’s Licence Conditions and Codes of Practice (LCCP) under the Gambling Act. The Commission’s LCCP makes clear that licensed gambling operators should comply with the CAP and BCAP Codes. If serious or recurring breaches of the advertising rules are committed by licensed gambling operators, the ASA will refer them to the Gambling Commission who can take regulatory action. The Commission continues to work closely with the ASA to ensure effective regulation. Compliance Report Gambling Survey 2010 5 On September 1 2010 the new, revised Codes were introduced. Other than in their presentation, the gambling rules for broadcast and non-broadcast advertising remain unchanged. The new Code rules are in line with the objectives of the Gambling Act. In essence, gambling ads should not portray, condone or encourage gambling behaviour that is socially irresponsible or could lead to financial, social or emotional harm. Advertisements for those products should not exploit the susceptibilities, aspirations, credulity, inexperience or lack of knowledge of children, young persons and other vulnerable persons. Only advertisers based in countries on the “White List”, in the European Economic Area or holding a Gambling Commission licence are legally permitted to advertise in the UK. It should be noted that not all categories of gambling are permitted in Northern Ireland and CAP and BCAP recommend taking legal advice when considering the advertising of a gaming or gambling product there. 2.2 CAP and BCAP Code Rules The purpose of the Codes is to maintain, in the best and most flexible way possible, the integrity of marketing communications in the interests of both the consumer and the industry.